Two penalties apply in the event you fail to file a federal tax return: 1) A failure-to-file penalty and 2) a failure-to-pay penalty for paying late (if owed). The failure-to-file penalty is generally 5% of the unpaid taxes for each month or part of a month a tax return is late, not to exceed 25%. The failure-to-pay penalty is generally 0.5% per month of your unpaid taxes up to 25%. Two takeaways:
Tip #1: File your return even if you can't pay or file for an extension.
Tip #2: Call our firm at 815.842.1112. We may be able to help guide you in the event you can show reasonable cause for not filing or paying on time.
Doing nothing results in accruing penalties which could impact you financially and could ultimately result in tax liens. We can help you! Call us today.
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